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Private Equity

Why private equity returns aren’t what they seem


ANALYSIS: Part one of a four-part series on private equity and the tyranny of internal rates of return.

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Today, I’m exploring the use and misuse of the internal rate of return calculation as it is employed by the private equity (PE) sector. This exposé, based on a paper by Oxford University economics professor Ludovic Phalippou, shows how overseas PE managers have used financial sleight of hand to

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